Assignment 10

1. Find all the first-, second- and third-order partial derivatives of the following functions: -
a) ( )

b) ( ) (

) (

) (

) (

)
c) ( ) (

( )

2. Find the Jacobian matrix of each of the systems:
a) ( )

( )
b) ( )

( )

( )
(

) (

) (

)
3. We consider Simple Keynesian Model of economy where equilibrium output is determined
by . The investment and government spending are exogenous variables (beyond the
control of an agent in the model) while consumption is some function of disposable income. The
Government wants to cut taxes but keep the equilibrium output constant. By how much should the
government purchases change?
(

Answer question 3, when taxes are exogenous and when taxes are function of income as ().
What does progressive taxation mean?